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Motor oil shortage may last into 2027 despite US-Iran deal, shops warn

by June 16, 2026
written by June 16, 2026

While a US–Iran deal to reopen the Strait of Hormuz may ease geopolitical tensions, auto repair shops in Tokyo and dealerships in Detroit are unlikely to see quick relief from shortages of motor oil, paint thinner, and other petroleum‑derived products. 

Industry executives warn that supply chains remain snarled, and smaller garages are being squeezed hardest, according to a Reuters report.

Shortages hit repair shops hard

According to the report, Tokyo auto shops have been struggling for months with shortages of motor oil, paint thinner, and diesel exhaust fluid since the Middle East conflict disrupted global supply chains. 

Hiroyuki Nakamura, director at Shin Etsu Denso, said oil supplies were “almost completely wiped out” after the war began in March, with nothing arriving since April.

He described the shortage as unprecedented in his 35 years repairing cars.

The impact has been particularly severe for popular car colors. Fuchu Car, a suburban Tokyo repair shop, has faced tight supplies of “pearl white” paint, a lustrous finish requiring a special gloss. 

Masato Yagai, the shop’s president, said they had only managed to secure one 300‑ml bottle of the finish in two weeks, barely enough for a single job.

If supplies run out, repainting vehicles in that color may have to be suspended.

Smaller garages are losing out as larger buyers and automakers stockpile limited supplies. The priority is being given to big manufacturers, leaving independent shops scrambling.

US and Iran deal unlikely to bring quick relief

US President Donald Trump announced on Monday that a preliminary agreement to end the war had been signed by both countries, though details remain unclear.

Analysts with Rystad Energy and ING Economics had previously said that even if shipments through Hormuz resume, it will take time for supply chains to normalise.

The Strait of Hormuz handles nearly a fifth of global oil flows. Its closure has created bottlenecks not only for crude but also for refined products critical to industries like auto repair.

Industry experts say that while the deal may eventually ease constraints, smaller shops will not see immediate relief.

A US trade group said prices for petroleum‑derived products are unlikely to ease until mid‑2027, reflecting the time needed to rebuild inventories and restore confidence in shipping routes.

Global ripple effects

The report also highlighted that Detroit car dealerships have also been hit by shortages of motor oil and paint products. 

Dealers report delays in routine maintenance and repairs, with customers facing longer wait times. Some shops have resorted to rationing supplies, prioritizing essential repairs over cosmetic work.

The shortages underscore how deeply the conflict has disrupted global supply chains. Petroleum‑derived products like motor oil and paint thinner are essential for industries far beyond energy markets.

The ripple effects are being felt in auto shops, manufacturing plants, and even consumer goods sectors.

Analysts say the situation reflects broader vulnerabilities in global trade. Even with a peace deal, restoring flows through Hormuz will require rebuilding trust among shipowners and insurers. 

Many buyers have already secured alternative supply routes, and it may take months before confidence in Hormuz shipments is fully restored.

Outlook

While the US–Iran deal is a step toward stability, auto shops and dealerships should not expect quick relief.

Supply chains remain fragile, inventories are depleted, and smaller players are struggling to compete with larger buyers. 

Industry experts warn that without a sustained recovery in shipments, shortages of motor oil, paint thinner, and other products could persist well into next year.

The post Motor oil shortage may last into 2027 despite US-Iran deal, shops warn appeared first on Invezz

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